Nimity: a complete equity management solution designed for all stakeholders.


Simple Agreement for Future Equity (SAFE)

A Simple Agreement for Future Equity (SAFE) is a type of financial instrument used by startups to raise capital from investors. A SAFE is designed to provide a simplified and standardized way to secure early-stage investments without determining an immediate valuation for the company.

In a SAFE agreement, investors provide capital to the startup in exchange for the right to receive equity in the company at a later funding event, typically during the next financing round, such as a priced equity round (e.g., Series A funding). Unlike traditional equity financing, a SAFE does not set a specific valuation for the company at the time of investment. Instead, it defers the determination of the company's valuation until the future funding round.

Key features of a SAFE include:

  • No Valuation at the Time of Investment: Unlike convertible notes, a SAFE does not carry an explicit interest rate or maturity date. It allows startups to avoid setting a valuation when they are still in their early stages and when the valuation might be uncertain.
  • Future Equity Conversion: At the next qualifying financing round, the SAFE converts into equity based on the terms specified in the agreement. The conversion is typically based on a pre-negotiated valuation cap or discount to the valuation of the priced round.
  • Investor Protections: SAFEs may include additional provisions to protect the investor's investment, such as a "valuation cap" to limit the maximum valuation at which the SAFE can convert into equity or a "discount rate" to provide investors with a better conversion price compared to the future investors.
  • Simplicity and Standardization: SAFEs are designed to be straightforward, simple, and standardized documents, making it easier and more efficient for startups to raise capital from multiple investors.

SeedBlink S.A. is registered in the Register of the Romanian Financial Supervisory Authority (ASF), under number PJR28FSFPR/400001, as of 03.11.2022 with an EU passport as per European Securities and Market Authority (ESMA) register of crowdfunding services providers.

Investing in start-ups involves risks, including loss of capital, illiquidity, dilution, lack of dividends. It is suitable only for investors capable of evaluating and bearing those risks. In any event, it should be done only as part of a diversified portfolio (meaning a portfolio in which investment in start-ups represents only a fraction of the total investments or assets). Before investing please read the risk warnings available at as well as the risks related provisions of the investment facilitation agreement that will be provided to you for the relevant round. SeedBlink is not responsible for any information provided by the start-ups, even if distributed through or by SeedBlink. SeedBlink does not endorse any start-up for investment nor does it advise you on the merits of your investment. Seedblink does not provide to you any other advisory services. The decision to invest is yours only. If you require help in evaluating a decision to invest, you should consult a professional adviser. The messages and documentation you receive from SeedBlink or the start-ups have been neither verified nor approved by the Romanian or the European authorities. Nothing in this message shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful.